Small‑cap stocks are showing signs of life after months of underperformance. As investors grow more optimistic about economic growth, capital is flowing back into smaller companies with strong fundamentals. These stocks often benefit earlier from improving conditions, making them attractive during market recoveries. Analysts highlight opportunities in industrials, biotech, and financial services. While risks remain higher compared to large‑caps, the potential for outsized returns is drawing renewed interest. Momentum could build if economic data continues trending upward.
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